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Homework answers / question archive / Shabna is a part owner and manager of Solar Cycles Ltd
Shabna is a part owner and manager of Solar Cycles Ltd. (SCL), a solar panel installation and service company in Adelaide. SCL sources its solar panels and converters from two overseas
suppliers, one from Vietnam (Hanoi Solar Co.) and the other from China (Zhejiang Sunlight
Energy Co.). When visiting Hanoi on a recent business trip to meet her suppliers, Shabna
became aware of current news reports of protests occurring outside Hanoi Solar's solar panel
factory. Local environmental activists were protesting in relation to the dumping of toxic
materials into a local river system, which was now affecting downstream water systems,
including water for local agricultural farming purposes. The panels from Hanoi Solar are
significantly cheaper than those produced by Zhejiang Sunlight Energy, but are also comparable in quality. Zhejiang Sunlight Energy has performed consistently as one of the most environmentally and sustainable panel manufacturers globally. Shabna has been under
pressure by the other owners of SCL to keep costs down, so she is conflicted about the situation. She understands her responsibilities to the company's other shareholders but also feels like she has an ethical responsibility to her business partners and customers.
Imagine that you work for Global Compact Network Australia, and are presenting to small to
medium size businesses (SMCs) in Adelaide. Drawing on your experience and understanding of the Ten Principles of the UN Global Compact, how would you advise Shabna's about her
situation. More specifically, which Principle would you advise Shabna pay specific attention to,
when Shabna asks you how she should approach Hanoi Solar Co. about their manufacturing
processes.